In Turkey, tomorrow’s central bank meeting is going to be particularly interesting following the recent sharp sell-off in the lira. Economists at Credit Suisse raise their short-term USD/TRY target to 9.60 from a range of 8.60-9.20.

USD/TRY downside limited to the 9.05 area even if the central bank surprises by staying on hold

“Although the inflation outlook has deteriorated, most investors and analysts expect a policy rate cut after last week’s dismissal of three MPC members.”

“We raise our short-term USD/TRY target to 9.60 from a range of 8.60-9.20 and we see USD/TRY downside limited to 9.05 even if the central bank surprises tomorrow and keeps the policy rate on hold.”